CHAPTER TWENTY-EIGHT: Property Investing in Spain

Spain occupies 85% of the Iberian Peninsula, and is the third-largest European nation if you include the Balearic and Canary Islands. There are two basic climate zones – the more temperate ‘wet’ area along the Atlantic coast, and the hot, ‘dry’ areas which cover the rest of the country. The attractions of this vast and varied country are obvious: beautiful beaches, 320 days of sunshine a year, delicious food and wine, the mountains of Andalucía, and the magnificence of cities such as Madrid and Barcelona. Spain has one of the most fascinating cultures, with the bonus of an easy-going and laid-back lifestyle. Tourism here is booming, and the country attracts over 40 million visitors every year. An estimated 300,000 Britons have made their homes in Spain, and many of them emigrate and set up businesses there.

From an economic point of view, Spain boomed from 1986 to 1990, averaging five percent annual growth. This growth resumed at a lower level in 1994 after a Europe-wide recession, and stood at 2.5% in 2003, 2.6% in 2004, and 3.3% in 2005 – satisfactory given the background of a faltering European economy. Spain was also one of the first group of countries to launch the single European currency (the euro) in 1999. The socialist president, Rodriguez Zapatero, has initiated economic and social reforms, and the country is working towards reducing unemployment (which, though greatly reduced already, is still high at 10.1%) and to adjusting to the monetary and other economic policies of an integrated Europe ...